CEO quits troubled freight company

By DANIEL RIORDAN transport writer

Owens Group chief executive Ian Newman has resigned and will leave the transport operator within a fortnight.

Mr Newman said his reasons were personal and referred inquiries to chairman Norman Geary, who will run the company as executive chairman until a successor is appointed.

Mr Geary said it was inappropriate for him to comment. Mr Newman's reasons for leaving were personal, he said, and unrelated to the company's performance.

The search for a replacement for Mr Newman would begin soo, Mr Geary said.

Mr Newman has been head of the diversified transport operator since August 1999.

He joined after executive roles with Tranz Rail's Cook Strait ferries business and Union Shipping.

His departure comes as Owens Group struggles to realise the fruits of a major restructuring exercise, estimated to have cost $5.4 million, overseen by Mr Newman.

Stephen Walker, head of New Zealand equities at the company's biggest institutional shareholder, 12.7 per cent holder AMP, said he was none the wiser about Mr Newman's departure after talking with the company yesterday, beyond the explanation of personal reasons.

"It's a company that has had some problems but we've been pleased with its progress since Ian Newman came on board."

Mr Walker saw no reason for the company to change its strategy.

Owens' bottom-line profit for the March year was $276,000, compared with $6.1 million the previous year, after the hefty restructuring costs.

In April, the company launched a growth strategy aimed at niche high-margin business opportunities.

It rebranded itself Owens Global Logistics, changed its corporate colour to red and set about unifying its sprawling logistics and freight forwarding operations, including several Australian businesses.

Last month, it reported a drop in September-half profit, from $1.86 million to $1.44 million.

Mr Geary said then that the result was encouraging, considering the sluggish local economy, pressures on the Australian transport industry, the effect of the Olympics and the introduction of GST.

Revamping the business has done little for the share price, which has slid steadily from a high of almost $1.50 in mid-1999.

Yesterday, it fell 5c to close at 82c, 20,000 of the 56.5 million shares on issue changing hands in five trades.